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Warm Glow or Extra Charge? The Ambivalent Effect of Corporate Social Responsibility Activities on Customers’ Perceived Price Fairness

Open access
Habel, Johannes, Schons, Laura Marie, Alavi, Sascha, Wieseke, Jan·2016·Journal of Marketing

Abstract

Prior research has firmly established that consumers draw benefits from a firm's engagement in corporate social responsibility (CSR), especially the feeling of a “warm glow.” These benefits positively affect several desirable outcomes, such as willingness to pay and customer loyalty. The authors propose that consumers do not blindly perceive benefits from a firm's CSR engagement but tend to suspect that a firm's prices include a markup to finance the CSR engagement. Taking customers’ benefit perceptions and price markup inferences into account, the authors suggest that CSR engagement has mixed effects on consumers’ evaluation of price fairness and, thus, on subsequent outcomes such as customer loyalty. The authors conduct one qualitative study and four quantitative studies leveraging longitudinal field and experimental data from more than 4,000 customers and show that customers indeed infer CSR price markups, entailing mixed effects of firms’ CSR engagement on price fairness. The authors find that perception critically depends on customers’ CSR attributions, and they explore the underlying psychological mechanisms. They propose communication strategies to optimize the effect of CSR engagement on perceived price fairness.

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Metadata

Authors
Habel, J., Schons, L. M., Alavi, S., & Wieseke, J.
Venue
Journal of Marketing
Published
2016-01
Volume
80
Issue
1
Pages
84-105
ISSN
  • 0022-2429 (ISSN-L)
  • 1547-7185
OpenAlex
W1785379974
Cited by
258
References
14
FWCI
38.37
Type
journal article
Language
en
Open access
green
Licence
journals.sagepub.com/page/policies/text-and-data-mining-license (tdm)

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CoChat. (2026). Citation check: Warm Glow or Extra Charge? The Ambivalent Effect of Corporate Social Responsibility Activities on Customers’ Perceived Price Fairness. https://app.cochat.ai/papers/10.1509/jm.14.0389
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Habel, J., Schons, L. M., Alavi, S., & Wieseke, J. (2016). Warm Glow or Extra Charge? The Ambivalent Effect of Corporate Social Responsibility Activities on Customers’ Perceived Price Fairness. Journal of Marketing. https://doi.org/10.1509/jm.14.0389

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.